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London-based buyout firm Duke Street on Monday said it has acquired a majority interest in UK Wealth Management, the parent group for several well-established wealth management and employee benefits firms.

Financial details of the transaction weren't disclosed.

Duke Street plans to use UKWM as a platform company to drive consolidation in the sector, which is fragmented and undergoing a sea change as regulatory pressure alters the way financial products and advice are distributed to UK retail investors.

UKWM deals with £1.4bn of private capital in addition to the corporate pension funds on which it advises. It also provides specialist investment and tax planning advice to high-net-worth individuals and employee benefits advice to organisations and trustees.

The deal was sourced and led by Duke Street Partner Miles Cresswell-Turner, who built up a similar financial group, Towry Law, while a partner at Palamon Capital Partners.

"UKWM presents an exciting opportunity to gain early scale as Duke Street builds a platform for consolidation in the rapidly changing financial services market," Cresswell-Turner said.

New regulation under the Retail Distribution Review requires improved adviser qualifications, increased capital adequacy and the need to agree on transparent fees with clients.

"We expect regulation to lead to contraction and consolidation in the sector, presenting opportunities for UKWM to grow organically and by acquisition," Duke Street added.